Many outlets are reporting on a New York Times article claiming that “health plan costs for New Yorkers are set to fall 50%” as changes under the federal health care law take effect. This was announced by Gov. Andrew M. Cuomo on Wednesday, July 17. He is quoted as saying, “New York’s health benefits exchange will offer the type of real competition that helps drive down health insurance costs for consumers and businesses.”
One problem with the article is that it actually says, “While the rates will fall over all, apples-to-apples comparisons are impossible from this year to next because all of the plans are essentially new insurance products.” This immediately got us thinking, well where did a 50% price drop come into play?